Slide 1: SOL Group
SOL Group May 18, 2005 0
Slide 2: SOL Group 2004 Full Year Results
SOL Group 2004 Full Year Results 1
Slide 3: Business Description
Business Description SOL is a multinational company dedicated to the production, applied research and sales of industrial, medicinal, pure and special gases, as well as in home care services Industrial gases Home Care 2
Slide 4: The Industrial Gases Business - Product Range
The Industrial Gases Business - Product Range The Industrial Gases business produces and markets a complete range of industrial gases (both atmospheric and non-atmospheric gases) and is engaged in the research, design, construction and operation of industrial gas production facilities, storage and d
Slide 5: The Home Care Business - Product Range
The HOME CARE Business - Product Range The Home Care business (VIVISOL) supplies medical products and medical assistance services as well as equipment for home care therapy Home care respiratory Other home care Home care assistance assistance equipment Long term oxygen therapy Home care artifici
Slide 6: Key numbers
Key numbers 1447 employees 31 primary transformation plants, 35 secondary transformation plant More than 40,000 clients and over 70 applications Leading Home care business, with more than 45,000 patients served daily Euro 320,8 millions 2004 sales and Euro 53,9 millions 2004 Cash Flow Constant growt
Slide 7: Main Production Facilities
Main Production Facilities 6
Slide 8: Sales 1998 - 2004
Sol Group Sales 1998 - 2004 350 + 7,5% CAGR = 10,5% 300 250 Millions Euro 200 320,8 150 298,5 267,2 235,7 100 212,0 194,5 176,3 50 0 1998 1999 2000 2001 2002 2003 2004 7
Slide 9: SOL Group Sales breakdown 2004
SOL Group Sales breakdown 2004 Merchant 61.7% Home Care Pipeline 27.4% 10.9% 8
Slide 10: Sales Breakdown by geographical areas: 1998 - 2004
Sales Breakdown by geographical areas: 1998 - 2004 Mix is changing due to development of new initiatives outside Italy 1998 2004 EU Countries 12% EU Countries 25% Other European Countries 5% (Slovenia 2%) Other European Countries 6% Italy 83% Italy 69% 9
Slide 11: Sales outside Italy
Expand internationally Sales outside Italy CAGR = 21,5% 100 35% 90 30,7% 80 28,7% 30% 27,8% 70 25,5% % on total sales 60 23,7% 25% Millions Euro 21,4% 50 98,5 85,5 40 20% 17,4% 74,3 30 59,9 50,2 20 41,6 15% 30,6 10 0 10% 1998 1999 2000 2001 2002 2003 2004 Sales % on totale sales 10
Slide 12: Sales in Italy 1998 - 2004
Sales in Italy 1998 - 2004 CAGR = 7,3% 250 Sustained growth despite an unfavorable economic contest 200 150 Millions Euro 213,3 222,3 100 192,9 175,8 152,9 161,8 145,7 50 0 1998 1999 2000 2001 2002 2003 2004 11
Slide 13: Sales Breakdown by business: 1998 - 2004
Sales Breakdown by business: 1998 - 2004 Mix is changing due to rapid growth of Home Care sales 1998 2004 Home Care 16,7% Home Care 27,4% Industrial Gases Industrial Gases 83,3% 72,6% 12
Slide 14: Home Care Division Sales 1998 - 2004
Home Care Division Sales 1998 - 2004 90 CAGR = 19,9% 80 70 60 Millions Euro 50 88,8 40 75,8 30 63,2 52,3 20 42,6 34,5 29,8 10 0 1998 1999 2000 2001 2002 2003 2004 13
Slide 15: Technical Gases Division Sales 1998 - 2004
Technical Gases Division Sales 1998 - 2004 250 CAGR = 8,0% 200 150 Millions Euro 229,3 239,4 100 209,8 188,5 164,2 173,9 150,9 50 0 1998 1999 2000 2001 2002 2003 2004 14
Slide 16: EBITDA 1998 - 2004
Sol Group EBITDA 1998 - 2004 CAGR = 11,7% 80 26% 24,8% 24,9% 24,5% 24,3% 70 23,4% 24% 23,2% 60 21,9% 50 Millions Euro 22% % on sales 40 74,3 74,9 65,6 20% 30 51,5 54,6 48,2 20 38,6 18% 10 0 16% 1998 1999 2000 2001 2002 2003 2004 EBITDA % on Sales 15
Slide 17: EBIT 1998 - 2004
Sol Group EBIT 1998 - 2004 CAGR = 12,0% 11,6% 40 10,9% 11,1% 10,9% 12% 10,6% 10,0% 10,0% 35 10% 30 8% 25 Millions Euro % on sales 20 6% 33,2 34,8 15 28,4 4% 22,6 23,1 23,5 10 17,6 2% 5 0 0% 1998 1999 2000 2001 2002 2003 2004 EBIT % on Sales 16
Slide 18: PBT 1998 - 2004
Sol Group PBT 1998 - 2004 CAGR = 14,6% 35 12% 10,5% 9,7% 9,7% 9,8% 30 9,2% 10% 8,6% 25 7,8% 8% Millions Euro % on sales 20 6% 15 31,0 29,3 24,5 4% 10 20,4 20,6 20,3 13,7 2% 5 0 0% 1998 1999 2000 2001 2002 2003 2004 PBT % on Sales 17
Slide 19: Taxes and Tax Rate 1998 - 2004
Sol Group Taxes and Tax Rate 1998 - 2004 48,1% 20 50% 44,7% 45,5% 18 42,3% 16 40% 36,0% 35,8% 14 35,0% Millions Euro 12 Tax rate 10 30% 8 14,1 14,1 6 9,1 20% 4 8,8 7,4 7,1 5,8 2 0 10% 1998 1999 2000 2001 2002 2003 2004 Taxes Tax Rate 18
Slide 20: Net Profit 1998 - 2004
Sol Group Net Profit 1998 - 2004 CAGR = 13,5% 20 7% 6,2% 18 5,8% 5,9% 5,6% 5,3% 6% 16 5,1% 14 4,5% 5% Millions Euro 12 % on sales 4% 10 16,9 3% 8 15,7 15,2 13,2 13,2 6 11,3 2% 4 7,9 1% 2 0 0% 1998 1999 2000 2001 2002 2003 2004 Net Profit % on Sales 19
Slide 21: Cash Flow 1998 - 2004
Sol Group Cash Flow 1998 - 2004 CAGR = 11,5% 60 18,8% 18,5% 20% 18,1% 17,6% 16,8% 16,8% 50 15,4% 15% 40 Millions Euro % on sales 30 10% 53,9 49,3 50,0 43,0 20 40,0 34,0 28,0 5% 10 0 0% 1998 1999 2000 2001 2002 2003 2004 Cash Flow % on Sales 20
Slide 22: Capital Expenditures 1998 - 2004
Sol Group Capital Expenditures 1998 - 2004 Average = 16,9% 24,4% 60 25% 20,4% 50 18,0% 20% 16,0% 16,6% 13,9% Millions Euro 40 15% % on sales 11,5% 53,4 30 48,0 48,0 10% 43,0 34,0 34,0 20 5% 27,0 10 0% 1998 1999 2000 2001 2002 2003 2004 Capex % on sales 21
Slide 23: Strategy
STRATEGY Focus on the Expand European market internationally Improve Be a Solution Home Care Provider business 22
Slide 24: Focus on the European Market
Focus on the European Market Population : 650.572.200 GDP(PPP-US$): 12.419,71 billion GDP per capita: 19.090 (US$-PPP) Europe 15 Population: 381.517.250 GDP(PPP-US$): 10.123,61 billion GDP per capita: 26.535(US$-PPP) 23
Slide 25: 15 old European countries
15 “old“ European countries 2.650 24
Slide 26: SOL in hospitals
SOL in hospitals Gas companies can not be only cylinders suppliers any more Sol is becoming provider of all the services, plants and equipment related to the supply of Medicinal Gases to patients 25
Slide 27: What could gas companies provide to ehospitals
What could gas La SOL companies provide to ehospitals l’Ospedale ?? 26
Slide 28: Improve the home care business: Home Care Division Sales
Improve the home care business Home Care Division: Sales 1998 - 2004 100 23,6% 25% 22,7% 90 20,9% 20,0% 80 20% 17,2% 70 15,6% Millions Euro 60 15% % YoY 50 88,8 40 75,8 10% 30 63,2 52,3 20 42,6 5% 29,8 34,5 10 0 0% 1998 1999 2000 2001 2002 2003 2004 Sales % YoY 27
Slide 29: Improve the home care business
Improve the home care business Mechanical ventilation Enteral nutrition Sleep apnea Oxygentherapy Advanced Home Care 28
Slide 30: Home Care: when hospitals become virtual
Home Care: when hospitals become virtual 29
Slide 31: What is a virtual hospital?
What is a virtual hospital ? LOX LOX VENT HEN VENT VENT CONC CONC HEN HEN HPN LOX CPap CONC HPN AHC HEN CONC HEN HEN Control AHC CPap CPap Unit AHC AHC AHC HCP CPap H30
Slide 32: Home Care service provider
Home Care service provider Physician Patient’s home 31
Slide 33: Expand internationally
Expand internationally Three new Air Separation Units Feluy in Europe Feluy Mantova Jesenice Verona Jesenice Sisak Cuneo Kavadarci Piombino Salerno 32
Slide 34: New ASU in Jesenice
Slovenia New ASU in Jesenice 33
Slide 35: New ASU in Kavadarci and new CO2
Macedonia New ASU in Kavadarci and new CO2 production in Bitola 34
Slide 36: New liquefaction unit in Feluy
Belgium New liquefaction unit in Feluy 35
Slide 37: Be a Solution Provider
Be a Solution Provider Teleremoting Total Gas Management Professional trainings for a safety use of gases CO2 blasting Gas distribution plants maintenance Engineering: evaluation and optimization of gas uses Quality certification of gases and gas storage installations On-site gas production plants 3
Slide 38: Be a Solution Provider: SOLFood, SOLmet, Ecojet
Be a Solution Provider Ali SOLFood A complete cooking and freezing line Advanced Gas Technological Solutions based on our cryoSOL patent SOL MET SOLmet solutions to improve Melting Enhanced Technologies efficiency in foundries Patented Ecojet ECOJET® solutions for waste water treatment Waste Water T
Slide 39: SOLMIX
Be a Solution Provider SOLMIX® Heat Treatment Technologies A complete range of equipment and technologies for heat treatment processes 38
Slide 40: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.12.04 31.12.03 % % Net turnover 320.804 100,0 298.499 100,0 Other revenues 2.966 0,9 2.528 0,8 Work in progress 5.748 1,8 4.082 1,4 Total revenues 329.518 102,7 305.109 102,2 Raw materials 96.001 29,9 85.596 28,7 Services 96.248 30,0 86.846
Slide 41: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.12.04 31.12.03 % % EBITDA 74.932 23,4 74.265 24,9 Depreciation & Amortization 36.975 11,5 34.869 11,7 Other provisions 3.111 1,0 6.227 2,1 EBIT 34.847 10,9 33.169 11,1 Net financial (3.807) (1,2) (3.706) (1,2) Ordinary income 31.040 9,7 29.
Slide 42: Sol Group Consolidated Balance Sheet
Sol Group Consolidated Balance Sheet (millions Euro) 31.12.04 31.12.03 31.12.04 31.12.03 Assets Liabilities Net fixed assets 225.2 204.1 Shareholder's equity 224.6 212.8 Other fixed assets 8.9 9.8 Minorities 7.3 7.0 Cash and liquid assets 21.9 24.3 Financial debts 98.1 89.5 Net receivables 134.6 128
Slide 43: Sol Group Net Financial Position
Sol Group Net Financial Position (thousands Euro) 31.12.04 31.12.03 Cash and cash at bank 21.888 24.310 Securities 218 577 Loans - current portion (18.166) (18.494) Leases - current portion (1.445) (1.428) Due to shareholders (44) (1.332) Short term liquidity 2.451 3.633 Investments securities 521 4
Slide 44: SOL Group 2005 First Quarter Results
SOL Group 2005 First Quarter Results 43
Slide 45: Sales by Division and by Quarter
Sol Group Sales by Division and by Quarter 90 82,2 84,7 78,6 80,7 79,3 75 24,3 21,6 23,3 20,8 22,9 Change Millions Euros 60 Q1 2005 / Q1 2004 + 7,7 % 45 57,9 59,0 59,0 60,4 56,3 Q1 2005 / Q4 2004 + 3,0 % 30 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Technical Gases Home care 44
Slide 46: Sales by geographical areas and by Quarter
Sol Group Sales by geographical areas and by Quarter 90 82,2 84,7 78,6 80,7 79,3 Change 75 Q1 2005 / Q1 2004 26,7 24,7 26,1 22,3 25,4 Millions Euros 60 Total + 7,7% Italy + 3,1% 45 58,0 56,3 56,0 53,9 56,1 Other countries + 19,4% 30 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Italy Other countries 45
Slide 47: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.03.05 31.03.04 31.03.04 comparable (*) as reported Net turnover 84.703 78.640 78.640 Total revenues 86.493 80.085 81.185 102,1% 101,8% 103,2% Added value 34.536 32.456 33.556 40,8% 41,3% 42,7% EBITDA 19.740 18.668 19.768 23,3% 23,7% 25,1% E
Slide 48: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.03.05 31.03.04 Q1 05/Q1 04 comparable * Net turnover 84.703 78.640 + 7.7% Total revenues 86.493 80.085 + 8.0% 102,1% 101,8% Added value 34.536 32.456 + 6.4% 40,8% 41,3% EBITDA 19.740 18.668 + 5.7% 23,3% 23,7% EBIT 9.939 9.350 + 6.3% 11,7% 1
Slide 49: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.03.05 31.03.04 % % Net turnover 84,703 100.0 78,640 100.0 Other revenues 442 0.5 1,461 1.9 Work in progress 1,348 1.6 1,084 1.4 Total revenues 86,493 102.1 81,185 103.2 Raw materials 25,311 29.9 23,800 30.3 Services 24,771 29.2 23,078 29.3
Slide 50: Sol Group Net Financial Position
Sol Group Net Financial Position (thousands Euro) 31.03.05 31.12.04 Cash and cash at bank 22,444 21,888 Securities 218 218 Loans - current portion (17,130) (18,166) Leases - current portion (1,330) (1,445) Due to shareholders (44) (44) Short term liquidity 4,158 2,451 Investments securities 448 521
Slide 51: SOL Group
SOL Group 50